Analyst Ming-Chi Kuo with Concord Securities via AppleInsider:
Specifically, Kuo has heard that the iPhone 5 will include the faster A5 processor already found in the iPad 2, as well as a higher resolution 8 megapixel rear camera. He has also been told that Apple will switch to a Qualcomm baseband for both GSM and CDMA models, along with an improved antenna design.
The iPhone 5 will not look very different from the current iPhone 4 according to Kuo. That’s why I think Apple will name it iPhone 4S instead. ‘S’ for speed, from the A5 CPU and not from any LTE connection. Thanks to the introduction of the CDMA iPhone 4 Apple has gone from building two SKUs to four. With a Qualcomm-sourced baseband chip that works on both GSM and CDMA networks Apple can go back down to two SKUs, which is important in manufacturing to simplify the process, reduce defects, and maximize efficiency. At the end this helps Apple to improve profit margins. Kuo also reports that the next iPhone will begin mass production in September.